The Reserve Bank of India (RBI) has suggested a number of outsourcing regulations for the country’s non-banking financial companies (NBFCs), in order to safeguard them from the ‘inherent’ risks of outsourcing.

The regulations include the proposal that NBFCs should not outsource core management and decision-making functions, along with a strict set of guidelines for how outsourcing should be carried out.

All of the proposals are documented in a draft report released by the RBI. ‘The outsourcing activities are to be brought within regulatory purview to protect the interest of the customers and to ensure that RBI has access to all books, records and information available with service providers,’ the report said.

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